Trending Sector

Domestic reopening

Not a matter of whether, but when

  • Singapore’s Stabilizing Phase is expected to end on Sunday (24 October)
  • Based on the elevated number of cases, the rising number of deaths and ICU patients, we think there’s a possibility that current restrictions could be extended for at least another two weeks
  • Ceteris paribus, we believe we have seen the worst in terms of price action when the Stabilizing Phase was first announced on 24 September
    • Current restrictions are unlikely to be further tightened
  • Domestic reopening is not a matter of whether, but when  
    • Any price reaction from a possible further extension of current restrictions on domestic reopening plays ComfortDelGroKoufuFCTLendleaseSuntec REIT, and Starhill Global) should be minimal
    • Pullback towards their respective 50% downward retracement levels seen as a buying opportunity

Domestic reopening stocks

StockPrice ($)
18-OctPost 24 Sept low50% downward retracement
ComfortDelgro1.581.511.55
FCT2.332.252.29
Suntec REIT1.491.411.45
Starhill Global0.6550.6250.64
Lendlease0.8950.840.87
Koufu0.660.630.65

 
Stocks to Watch

Ascendas REIT

Look no further than its own backyard

  • Science Park redevelopment is a c.S$5.6bn gross development value (GDV) opportunity for A-REIT, driving net asset value (NAV) higher by up to 24% over time
  • Redevelopment of TUV SUD PSB Building to kickstart unlocking of hidden value
  • Pivot to resilient and growth new economy assets – contributing 85% of asset value, is not yet priced in